Home prices still surge despite mortgage rates rising. Generally, that tends to force housing prices to decline. But not this time around. But what is causing this scenario? The economy is a big part of what is happening. Recession or not? The GDP has declined for two consecutive quarters which economists claim is a recession. The other side shows consumer spending is strong in addition to a relatively strong job market.
Home prices will continue to rise causing an affordability issue as earnings are not keeping up with inflation. Economist are not seeing home prices falling anytime soon. Median sales prices of an existing home is slightly over $360,000 and expected to raise to approximately $400,000. Existing home sales fell 5.4% from May to June marking the fifth straight month of declining sales. The "for sale" inventory seems to be rising slightly. But even still, home buyers are still making purchases and doing so for many reasons. But solid reasons at that, especially financial ones. It is imperative that you stay within your budget and needs, otherwise you could end up with buyers remorse and subsequently have to sell to get out of a bad situation.
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